Listed Chinese fast food chain Zhou Hei Ya International has teamed up with venture capital firm Tiantu Capital to set up a Rmb3 billion ($475 million) retail investment fund, according to a recent disclosure.
The fund will mainly invest in the consumer industry and focus on market opportunities in the consumption upgrade and new retail field, Zhou Hei Ye, a food chain known for its spicy braised duck, told the Hong Kong Exchange.
Tentatively named Shenzhen Tiantu Xingnan Innovative Consumption Industry M&A Investment Partnership, the fund is jointly established by Tiantu Capital and its affiliate Tiantu Xing’an, both subsidiaries of Shenzhen Tiantu Equity Investment and Management, and Chusi Fangda, an indirect wholly-owned subsidiary of Zhou Hei Ye.
The total amount of capital contributions to the fund is Rmb3 billion ($475 million). Both Tiantu and Chusi Fangda will subscribe to Rmb500 million of the initial capital contribution, with Tiantu Capital acting as general partner. The subscription will be contributed in cash.
“By investing in the fund, the company aims to explore the industry synergetic resources and promote sustainable development,” Zhou Hei Ye said.
Zhou Hei Ya, a China-based investment holding company, is principally engaged in the production, marketing and retailing of casual braised duck-related casual food. It is listed on the main board of the Hong Kong Stock Exchange.
On the other hand, Tiantu Capital is a limited partnership and an indirect wholly-owned subsidiary of Shenzhen Tiantu. It is principally engaged in asset management, investment consultation, equity investment, and investment management.